positive sentiment


ECB, Fed rate cut hopes lift equities markets, including Bursa Malaysia

KUALA LUMPUR: Expectations of monetary easing by major central banks such as the European Central Bank (ECB) and the US Federal Reserve (Fed) have boosted most equities markets, including Bursa Malaysia.

At today’s close, the FTSE Bursa Malaysia KLCI (FBM KLCI) was almost flat, after recovering earlier losses, to end 0.27 of-a-point or 0.016% higher at 1,655.67 versus 1,655.40 recorded on Monday.

The top gainers among heavyweights and blue chips included Sime Darby Plantation, which jumped 12 sen to RM4.78, Genting Malaysia (+9.0 sen to RM3.45), Tenaga (+8.0 sen to RM13.82) and Axiata rose three sen to RM5.13.

These counters contributed a combined 3.65 points to the composite index.

The benchmark index opened 0.67 of-a-point lower at 1,654.73, and moved between 1,654.02 and 1,658.35.

Gainers led losers by 462 to 369, while 386 counters were unchanged, 671 untraded and 16 others suspended.

Turnover rose to 2.77 billion units worth RM2.01 billion from 2.65 billion units worth RM1.54 billion recorded yesterday.

A dealer said although the expectations of interest rate cuts by the ECB and the Fed had already been factored into most equities markets, the positive sentiment are still in play.

“The Fed will likely cut its interest rate by 25 or 50 basis points for the first time since 2008 during its upcoming two-day Federal Open Market Committee beginning July 30, while the ECB has indicated it will cut rates by 10 basis points this Thursday.

“We are seeing investors responding well to these key decisions,” the dealer said.

He also said higher crude oil prices following heightened tensions in the Middle East would also lend support to the market.

Regionally, Singapore’s Straits Times Index rose 0.47% to 3,373.13, Hong Kong’s Hang Seng Index gained 0.34% to 28,466.48, while Japan’s Nikkei 225 rose 0.95% to 21,620.88.

Among other heavyweights, Maybank was flat at RM8.82, Public Bank lost eight sen to RM22.80 and PChem slipped one sen to RM7.69.

As for the actives, Netx and KNM were both flat at 1.5 sen and 36.5 sen, respectively, while Excel Force rose five sen to 70.5 sen.

The FBM Emas Index added 5.21 points to 11,775.65, the FBMT 100 Index gained 1.69 points to 11,599.13 and the FBM Emas Shariah Index advanced 10.13 points to 12,167.29.

The FBM 70 inched up 1.32 points to 14,893.27 and the FBM Ace was up by 46.84 points to 4,750.17.

Sector-wise, the Financial Services Index decreased 29.31 points to 16,504.52, the Industrial Products and Services Index eased 0.35 of-a-point to 155.80 but Plantation Index was 24.61 points higher at 6,809.45.

Main Market volume was higher at 1.82 billion shares worth RM1.83 billion from 1.67 billion shares worth RM1.36 billion recorded yesterday.

Warrants turnover decreased to 410.86 million units worth RM84.42 million versus 451.21 million units worth RM89.17 million.

Volume on the ACE Market improved to 536.22 million shares worth RM97 million against 525.33 million shares worth RM91.17 million.

Consumer products and services accounted for 239.17 million shares traded on the Main Market, industrial products and services (169.21 million), construction (145.40 million), technology (316.04 million), SPAC (nil), financial services (36.42 million), property (85.11 million), plantation (15.74 million), REITs (9.89 million), closed/fund (1,800), energy (496.39 million), healthcare (15.04 million), telecommunications and media (224.76 million), transportation and logistics (53.20 million), and utilities (14.48 million).

The physical price of gold as at 5.00pm stood at RM181.59 per gramme, down 70 sen from RM182.29 at 5.00pm yesterday. Bernama

ECB, US Fed rate cut hopes lift equities markets, including Bursa Malaysia

KUALA LUMPUR, July 23 — Expectations of monetary easing by major central banks such as the European Central Bank (ECB) and the US Federal Reserve (Fed) have boosted most equities markets, including Bursa Malaysia. At today’s close, the FTSE…

Bursa Malaysia expected to reach 1,700 next week

KUALA LUMPUR: Bursa Malaysia is expected to continue its uptrend next week and likely to reach 1,700 points after a steady rebound on Friday.

Phillip Capital Management Asia-Pacific senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said for the upcoming week, the local market was expected to be supported by local sentiment with minimum exposure to foreign risks.

“Automotive and media sectors are poised for better prospects next week,” he told Bernama.

For the week just ended, the FBM KLCI index slipped 0.77 per cent to 1,656 from 1,669 points.

The local bourse was also influenced by global stock performance mainly the US market.

Due to the potential interest rate cut and comments from the Federal Reserve office earlier in the week on signs of economic weakening, the US equity indices had a mild recovery from the early losses.

For the week just ended, Nazri said the local market remained subdued as the wave of US corporate earnings was showing flat to negative results which dampened the positive sentiments of the economic outlook.

“Besides lower earnings of companies, the market was also impacted by the concerns over the ongoing trade spat between the US and China, and weak data from the region,” he said.

Bursa Malaysia was traded volatile and rebounded on Friday after profit-taking activities throughout the week.

On a Friday-to-Friday basis, the FBM KLCI declined 11.26 points to 1,658.19 from 1,669.45 a week earlier.

The FBM Emas Index eased 54.03 points to 11,790.22, the FBMT 100 Index declined 53.26 points to 11,616.25 and the FBM Emas Syariah Index trimmed 77.06 points to 12,164.862.

The FBM Ace Index gained 24.84 points to 4,674.97 and the FBM 70 up 35.46 points to 14,913.03.

Sector-wise, the Financial Services Index fell 46.31 points to 16,595.80, the Plantation Index dipped 97.28 points to 6,814.0 and the Industrial Products and Services Index inched down 4.51 points to 156.81.

Weekly turnover rose to 15.49 billion units worth RM9.46 billion from 12.99 billion units worth RM10.26 billion last week.

Main Market volume increased to 10.83 billion shares worth RM8.27 billion compared with last week’s 9.36 billion shares valued at RM9.4 billion.

Warrants turnover rose to 1.99 billion units worth RM391.59 million from 1.92 billion units worth RM411.56 million.

The ACE Market volume fell to 2.66 billion shares worth RM486.93 million compared with 4.53 billion shares valued at RM2.55 billion previously. — Bernama

Bursa Malaysia expected to continue uptrend next week

KUALA LUMPUR, July 20 ― Bursa Malaysia is expected to continue its uptrend next week and likely to reach 1,700 points after a steady rebound yesterday. Phillip Capital Management Asia-Pacific senior vice-president (investment) Datuk Dr Nazri Khan…

Ringgit opens higher than US dollar

KUALA LUMPUR, July 19 ― The ringgit opened higher against the US dollar on positive sentiment supporting the market, a dealer said. At 9.03am, the ringgit stood at 4.1090/1120 against the US dollar from yesterday’s close of 4.1130/1150. He said…

RM253.4m foreign buying good sign for local market

KUALA LUMPUR, July 7 — The net inflow of RM253.4 million between Monday-Thursday in the first week of July was a good sign for the domestic equity market. However, market players continued to be on the lookout for uncertainties at the…

Stocks cautious as investors focus on weak economic data

LONDON, July 2 — Investors were sticking to the sidelines today as positive sentiment over a resumption of US-China trade talks was offset by weaker global economic data, traders said.  In Europe, both the French blue-chip CAC 40 index and…

Rebound in sentiment of Malaysian-export oriented businesses: RAM survey

KUALA LUMPUR: The latest RAM Business Confidence Index (BCI) for the third and the fourth quarter of 2019 indicates a rebound in the sentiment of export-oriented corporates in Malaysia on the back of trade diversion arising from the US-China tariffs dispute.

The overall index for export-oriented corporates jumped 2.1 points – the first uptick in the last three quarters and the biggest increase to date – to 57.9 points, mainly attributable to a steep spike in corporates’ turnover and profitability subindices (+7.2 points to 61.6 and +7.5 points to 61.6, respectively).

This, coupled with an improved reading for the corporate manufacturing sector in particular, may have stemmed from positive trade diversion effects, said RAM Ratings.

“Malaysia is one of the key beneficiaries of the ongoing US-China trade war, which has prompted the realignment of global supply chains away from China. A sample of our export-oriented survey respondents reported more orders, mostly from other Asian economies such as Thailand and South Korea,” the rating agency said in a statement today.

Anticipating a recovery in their order books after the sluggish performance this year to date, the proportion of export-oriented firms that expect to operate above normal capacity (>95% capacity utilisation rate) also swelled 25.9%, compared with 14.3% in the last survey.

The rise in net foreign direct investment inflow and foreign investment approvals in first-quarter 2019 is also consistent with the greater need for more capacity by export-oriented firms and supporting businesses along the supply chain.

Despite more positive readings for export-oriented corporates, the overall RAM BCI still indicates a subdued level of optimism through the next six months. The overall indices for both corporates and small and medium enterprises (SMEs) are little changed from the last survey, standing at a respective 53.6 (+0.1 points) and 51.8 (-0.3 points).

“The cautiously optimistic sentiment is not surprising given the challenging operating environment, particularly amid the disruptions caused by the US-China trade tensions, Brexit complications and uncertainties amid a scenario of moderating global growth. Firms mostly still believe that the next six months will remain challenging, despite signs of trade diversion benefits,“ said RAM.

It said the heightened concern is reflected in the higher number of firms citing “weak economic conditions” as their main challenge in the next six months.

“This proportion has risen to record highs of 43.1% for corporates and 44.8% for SMEs. As such, the improvement in performance-based indicators may be shortlived given the lingering economic ambiguity.”

The RAM BCI also suggests that the economic headwinds in the second half of 2019 have a more pronounced impact on smaller SMEs rather than bigger corporates. While larger manufacturing and export-oriented firms have expressed more positive sentiment despite the tougher operating conditions, smaller SMEs do not appear to share the same bullishness.

The turnover and profitability sentiment of export-oriented SMEs weakened 0.6 and 0.7 points respectively, while that of manufacturing SMEs declined 0.7 and 0.2 points. This could be due to their relatively small stature and less diversified supply chains as well as client bases, which render them prone to fluctuating business volumes.

The RAM BCI is a survey jointly conducted by RAM Holdings Bhd and RAM Credit Information Sdn Bhd, on business sentiment in Malaysia. Released quarterly, the index is based on data from a survey of close to 3,500 SMEs and corporates across five main industry segments respectively.

Ringgit expected to trend higher next week

KUALA LUMPUR: The ringgit is expected to trend higher next week as investors await for new catalyst following renewed prospects of the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at next week’s G20 Summit, said an analyst.

The prospect of the meeting had triggered positive sentiment surrounding risk assets, said FXTM analyst Han Tan.

“The ringgit strengthened by about 0.3% against the US dollar this week, as the US Federal Reserve’s recent meeting indicated the possibility of a US interest rate cut over the coming months.

“The dollar’s tumble has helped the Group of 10 and Asian currencies advance further, given that the Fed’s bias towards easing its monetary policy settings has weakened support for the greenback,” he said in a note.

Tan also said the keenly-awaited Trump-Xi meeting was set to be a major catalyst for global risk sentiment in the week ahead.

“A favourable outcome that brings the world closer to a concrete resolution in the US-China trade conflict could send risk assets higher, including the ringgit,” he added.

Tan noted that for the week ahead, the ringgit’s near-term support level would be at the 4.14-level, while further weakness may be halted at the 4.17 mark.

On a Friday-to-Friday basis, the ringgit strengthened to 4.1480/1510 from 4.1650/1690 against the US dollar.

It traded mixed against other major currencies.

The local unit depreciated against the Singapore dollar to 3.0545/0576 from 3.0457/0491 at last Friday’s close, and declined to 3.8568/8607 from 3.8490/8534 versus the yen.

It improved versus the euro to 4.6864/6915 from 4.6940/6989 previously and, vis-a-vis the pound, it appreciated to 5.2505/2552 from 5.2691/2759. — Bernama

Ringgit up against US dollar backed by positivity on US-China trade front

KUALA LUMPUR: The ringgit rose against the US dollar at the opening today in line with its regional peers due to positive sentiment arising from the upcoming meeting between US President Donald Trump and China President Xi Jinping.

At 9am, the ringgit was at 4.1730/1760 against the greenback from 4.1800/1830 at Tuesday’s close.

A dealer hoped that Trump-Xi meeting slated to be held during the G20 summit in Osaka, Japan end of this month, would provide the much-awaited solution to the escalating trade war involving the two economic superpowers.

“We hope a truce is achieved and the tension would de-escalate,“ he said.

The prevailing positive sentiment among investors has also pushed up oil prices.

As of 9am, benchmark Brent Crude was at US$62.49 per barrel compared with US$60.46 per barrel yesterday.

Besides the US-Sino trade war, reports of a possible interest rate cut by the US Federal Reserve and European Central Bank have also boosted investors sentiment for emerging markets.

At the opening, the ringgit was mixed against a basket of major currencies.

The local currency was lower at 5.2421/2476 compared with Tuesday’s close of 5.2355/2409 but improved versus the euro to 4.6729/6780 from 4.6745/6795.

However, it eased against the Singapore dollar to 3.0518/0551 from 3.0471/0497 but fared better against the yen to 3.8436/8474 from 3.8596/8635 yesterday. – Bernama